NEW YORK--(BUSINESS WIRE)--Fitch Ratings has affirmed the long-term IDR of Brookfield Asset
Management Inc. (BAM) at 'BBB'. The affirmation affects approximately
$3.5 billion of parent level long term debt issued by BAM. The rating
outlook is Stable.

The affirmation reflects BAM's strong credit profile which is supported
by the equity values of BAM's subsidiaries, the largest of which are
publicly traded, as well as substantial dividends or distributions from
its subsidiaries and investments which are concentrated in the real
estate and power generation sectors. BAM receives approximately $600
million annually in dividends from its four largest publicly traded
investments, Brookfield Office Properties, Brookfield Infrastructure
Partners, General Growth Properties, and Brookfield Renewable Energy.
BAM's equity interests in these same investments has an aggregate market
value of approximately $18 billion providing substantial interest and
asset coverage to BAM's outstanding debt.

BAM is a holding company that through majority-owned or controlled
operating subsidiaries owns a diversified business portfolio,
principally commercial real estate and power generation assets, which
provide a stable stream of earnings and cash flows. BAM also derives a
stable and recurring revenue stream from its asset management business.

BAM is a holding company with a portfolio of investments, rather than an
operating company. Therefore Fitch analyzes recurring cash flows that
directly accrue to BAM in the form of dividends, distributions, and
asset management fees of approximately against parent level debt. The
resulting Adjusted Parent Only Cash Flow (APOCF, a non-GAAP or
non-International Financial Reporting Standards measure) approximates
$1.1 billion and produces a debt service coverage measure of
approximately 4.5x in Fitch's models. APOCF to parent level debt is
approximately 24%. As recent investments mature, Fitch expects coverage
measures to improve 4.5x to 5.0x through 2015, and leverage to improve
slightly to 25% to 27%.

Key Positive Rating Drivers

--Diversified and stable revenue sources from a global investment
portfolio

BAM announced the restructuring of its real estate holdings with the
majority of its investments held by a new entity, Brookfield Property
Partners (BPP). BAM will spin-off an approximate 7% to 10% interest in
BPP to its shareholders and BPP will be listed on major U.S. and
Canadian exchanges. Key assets of BPP include a 51% interest in
Brookfield Office Properties (BOP) and a 21% stake in General Growth
Properties (GGP). Fitch expects BAM to gradually monetize its interest
in BPP following a similar restructuring of BAM's power generation
assets into a majority owned subsidiary, Brookfield Renewable Energy
Partners.

Liquidity is strong. BAM maintains $2.2 billion in unsecured credit
facilities with a consortium of banks and debt maturities are
manageable. In January 2013, BAM raised CAD$350 million in seven and ten
year debt with coupons of 3.95% and 4.54% to primarily repay higher
coupon debt.

The holding company structure, with its primary assets held in several
majority-owned publicly listed companies, enhances BAM's financial
flexibility in managing the capital structures of its operating
subsidiaries, but also subordinates its cash flow which will now be
primarily derived from dividends and distributions. BAM also receives
management fees based on asset valuations of its core operating
subsidiaries which Fitch considers a stable source of income as well as
performance-based incentive distributions.

The holding company structure also protects BAM from the legal risks of
its subsidiaries and parental guarantees or other contingent supports
are limited. Additionally, there are no cross default provisions between
subsidiaries or between the parent and subsidiaries.

Rating Sensitivities

Positive: No positive rating actions are currently foreseen

Negative: Future developments that may individually or collectively lead
to a negative rating action include:

--A change in the risk profile of BAM's real estate and power assets
which are generally considered to be of very quality;

--A large debt financed acquisition

Fitch currently BAM as follows:

Long-term IDR 'BBB'

Senior unsecured notes 'BBB'

The Rating Outlook is Stable

Additional information is available at 'www.fitchratings.com'.
The ratings above were solicited by, or on behalf of, the issuer, and
therefore, Fitch has been compensated for the provision of the ratings.

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